Market Research

• Market research is a systematic method of gathering, analysing, and interpreting information about a market, including its customers and competitors.
• It is crucial for businesses to better understand the needs and wants of their target audience, competition, and market trends, helping them to make more informed and effective decisions.
• Primary research or field research involves fresh data collected for a specific purpose. This includes techniques such as surveys, interviews, questionnaires, focus groups, and observations.
• Secondary research or desk research involves using existing data that has been collected by another entity for a different purpose. This includes internal business records, government statistics, newspapers, industry reports, and academic studies.
• Qualitative research provides in-depth understanding and explores attitudes, behaviour, and experiences. It often uses small sample sizes and includes methods such as personal interviews and focus groups.
• Quantitative research involves numerically oriented data, such as statistics or percentages. Generally speaking, it uses larger sample sizes and includes methods such as surveys and questionnaires.
• Market segmentation divides a market into distinct groups with different needs, characteristics, or behaviour who might require distinct products or marketing approaches. Common factors for segmentation include geographical location, demographics (age, gender, occupation, etc), psychographics (lifestyle, values, personality, etc), and behaviour (brand loyalty, usage rate, etc).
• A market map or perceptual map is a diagram that visually represents the perceptions of customers or potential customers about specific attributes of a business or product compared to its competitors. It helps businesses identify market gaps and opportunities.
• Sampling is a process used in statistical analysis in which a predetermined number of observations are taken from a larger population. There are different sampling methods including random, stratified, cluster, and convenience.
• The purpose of market research is to help a business reduce risks by making effective and strategic decisions about product design, pricing, promotions, distribution, and growth opportunities.